Shares of Rural Electrification Corporation Ltd. (REC), and Power Finance Corporation (PFC) have gained nearly 40 percent this year. This their best performance in a single year since 2014. While shares of REC are up for the fourth day in a row, those of PFC are trading higher for the third straight day.
REC's shares are rising ahead of the company's board meeting on June 24 to consider a final dividend, if any for financial year 2023.
Aside of paying an interim dividend of Rs 3.25 in February this year and Rs 5 per share in November last year, REC also declared a 1:3 bonus issue of shares in August last year.
While volumes on PFC are 80 percent higher than its 20-day average on Wednesday, those on REC are 3.5 times higher than its respective 20-day average.
Most of the gains in both REC and PFC has come over the last one month. While PFC shares have surged 22 percent during this period, REC has gained 30 percent.
For financial year 2023, PFC had announced a record profit of Rs 11,600 crore, a growth of 16 percent compared to financial year 2022. The company paid a total dividend of Rs 13.25 per share for financial year 2023.
"Both REC and PFC have been forming a higher top, higher bottom structure and are in an uptrend," Ruchit Jain of 5paisa.com said. "We expect this trend to continue and hence, one can look for buying opportunities on any declines," he said.
Jain further said that support for PFC is around levels of Rs 190, while that for REC is around Rs 145-150 and that one should look to accumulate these stocks on any declines towards the above-mentioned support levels.
Shares of both REC and PFC are trading with gains of close to 3 percent.
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